so ppl who started LONG at 2 will be kinda "forced" to liquidate or they will have to pay fees for that position

It's not significant. At current rate (which could be highest in history), it costs $0.21 per hour to maintain a 5,000 BTC long position start at $2, or just $5.04 per day, or just 0.7% of unrealized profits per month.

Zhountong: please do make an official announcement explaining all the terms and possible situations for your users, because when I looked it up first I was confused really hard (and I'm still not certain that I understand fully how this works).

Zhountong: please do make an official announcement explaining all the terms and possible situations for your users, because when I looked it up first I was confused really hard (and I'm still not certain that I understand fully how this works).

Sure, I will do it in a few hours on the forum. Thanks for your support!

I'll say it again: Bitcoinica is backing its users net imbalance (at best). That means they are relying on their users to make a net profit. If their users make a net loss, then Bitcoinica makes a net loss. When it's their own reserves... well whatever; but this new plan is to use your money instead of their own as reserve. What happens then when their users make a net loss?.Withdrawn.

I'll say it again: Bitcoinica is backing its users net imbalance (at best). That means they are relying on their users to make a net profit. If their users make a net loss, then Bitcoinica makes a net loss. When it's their own reserves... well whatever; but this new plan is to use your money instead of their own as reserve. What happens then when their users make a net loss?

When Bitcoinica users are making net losses, the losses are deducted from their own accounts. You still get your $100,000.

When Bitcoinica users are making net losses, the losses are deducted from their own accounts. You still get your $100,000.

Yes; I was too hasty with that point. Withdrawn. I've gotten my Bitcoinica issues the wrong way around. My worry is that you can't cover profits; not losses... but that's been covered in a different thread, so let's not reopen it here.

When Bitcoinica users are making net losses, the losses are deducted from their own accounts. You still get your $100,000.

Yes; I was too hasty with that point. Withdrawn. I've gotten my Bitcoinica issues the wrong way around. My worry is that you can't cover profits; not losses... but that's been covered in a different thread, so let's not reopen it here.

Oh dear #1. Bitcoinica can't just liquidate random positions to get you your 100,000 USD; this is therefore not a demand-deposit account. You'll have to wait for those longs to liquidate.

Are you going to operate some sort of 10 day notification period for withdrawls?

Are you going to assume all deposits are fair game for use as reserve, or will it be opt-in?

When our customers have deposited a lot of money into Bitcoinica, we will set out a fixed reserve for withdrawals and liquidation of positions during redflag events. We will make sure that everyone is able to withdraw on demand. And we have also got a Trusted Mt. Gox account that allows $100,000 of withdrawals everyday.